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An elementary characterization of the Gini index

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  • Sanchez-Perez, Joss
  • Plata-Perez, Leobardo
  • Sanchez-Sanchez, Francisco

Abstract

The Gini coefficient or index is perhaps one of the most used indicators of social and economic conditions. In this paper we characterize the Gini index as the unique function that satisfies the properties of scale invariance, symmetry, proportionality and convexity in similar rankings. Furthermore, we discuss a simpler way to compute it.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36328.

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Date of creation: 31 Jan 2012
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Handle: RePEc:pra:mprapa:36328

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Keywords: Gini index; income inequality; axiomatization;

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  1. Aaberge, Rolf, 2001. "Axiomatic Characterization of the Gini Coefficient and Lorenz Curve Orderings," Journal of Economic Theory, Elsevier, vol. 101(1), pages 115-132, November.
  2. WEYMARK, John A., . "Generalized Gini inequality indices," CORE Discussion Papers RP -453, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Ebert, Udo, 1987. "Size and distribution of incomes as determinants of social welfare," Journal of Economic Theory, Elsevier, vol. 41(1), pages 23-33, February.
  4. Dutta, B. & Esteban, J., 1988. "Social Welfare And Equality," UFAE and IAE Working Papers 89.88, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  5. Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
  6. Mehran, Farhad, 1976. "Linear Measures of Income Inequality," Econometrica, Econometric Society, vol. 44(4), pages 805-09, July.
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